Research On Cross-regional Development Of China Resources Bank

As an important part of bank system in China,City Commercial Bank(short for CCB)is in the third echelon following the state-owned banks and joint-stock banks,serving the local economy is the fundamental of CCB,while CCB has played an irreplaceable role in the process of China's economic development.However,with the rapid development of economy and the financial industry,CCB has become increasingly strong in the financial system,the negative effects by only serving the local has become increasingly prominent,which seriously restricts its development.Therefore,from 2004 to the end of 2010,China gradually relaxed and supported the development of cross-regional development of CCB.Since then,the momentum of cross-regional development for CCB has been unstoppable.But many risk management problems appeared in the whole process of cross-regional development,so China's bank regulatory bureau began to tighten the cross-regional development policy of CCB since the beginning of 2011,and made it clear that the development process will be carefully promoted.The change of policy,to a large extent,reduces the possibility to build branches in different places,which is equivalent to set up a roadblock for CCB which has the requirements to build cross-regional business.So it becomes a pressing matter to find a new path for cross-regional development.For all city commercial banks in China,the level of cross-regional development is relatively low for China resources bank,regional regulation seriously hindered its development,profit margins becomes narrow continually and its scale stagnates,as well as regional risk concentration is more and more higher,cross-regional development has become an effective measurement to solve these problems.But with the tightening of the policy for cross-regional development of CCB,how to develop in cross regions,what are the ways are the key difficult problems to be solved.Based on the internal and external environment of China resources bank,combining its advantages,disadvantages,opportunities and threats,this paper will make a thorough study and analysis of its cross-regional development strategy.This paper takes cross-regional development strategy of China resources bank as the research object,using PEST and SWOT as the main analysis tools,combined with the case study method,comparative study method and literature-review method,the cross-regional development strategy of China resources bank is analyzed and suggested.This paper makes a detailed analysis on the internal and external environment of China resources bank,and summarizes the advantages,disadvantages,opportunities and threats of the China resources bank cross-regional development by using SWOT analysis tools,and concludes that the cross-regional development of the internal advantages outweigh the disadvantages,external opportunities are greater than threats,which induces that the cross-regional development can be carried out.Then,in view of the China resources bank market,11 provinces and 2 cities,including Jiangsu and Zhejiang provinces,have been selected as the key areas for their cross-regional development.Then four kinds of practice mode of cross-regional development are analyzed and concluded.We point out that China resources bank should using joint cooperation mode to make up the shortage in the short term;in the long term,China resources bank should get through the merger and acquisition mode to achieve rapid development;at the same time,business divisions should be set up in different places around the industry layout of China resources holding in China.Finally,in order to ensure the smooth implementation of the strategy,considering the actual situation of China resources bank,six internal management advices are given as follows:China resources bank should strengthen the informatization construction;establish the whole process management system with the core of "risk management ability boundary";to strengthen the awareness of compliance,strict internal management and cultivate expertise,to create professional characteristics of service brand;practice the fine management,control cost and improve efficiency;improve human resources management system,reserve professional talents.